Bain Capital Investors will cut its stake in HCA Holdings in half, according to a report about the company. Currently, Bain has a $1.13 billion stake in HCA following an initial take private deal in 2006, and subsequent IPO.
Bain acquired HCA Holdings alongside KKR in 2006 for approximately $21.3 billion. HCA is one of the largest hospital operators in the US. Bain, KKR and Bank of America offered up approximately $5 billion in equity as part of the original 2006 deal.
The company had been under private equity ownership once before in 1989, and went public for the first time in 1992, backers in that IPO included Goldman Sachs and JPMorgan.
HCA has conducted a few share buybacks from Bain and other investors since the 2011 float. Bain is still one of the largest shareholders in the company. Bain designee and board member Stephen Pagliuca is said to be stepping down at the end of this year as part of the buyback.
The investment in HCA came from Bain’s 2006 fund.
Investor interest has been consistent in HCA following the announcement of hospital expansion plans in several states, most recently Florida.
Last week, Bain was tapped as the lead investment partner on Virgin Cruises a new cruise line offering from the Virgin Group, the investment group backed by Richard Branson. That investment comes from Bain Capital Fund XI which closed on $7.3 billion in April, PEI reported at the time.